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The decision was one of a batch of measures the company said it took "to ensure security of our assets and preserve our cash balance".

Kogi plans to develop an integrated steel plant using a company-leased iron ore deposit on the Agbaja Plateau in Kogi State. The plateau contains a JORC-compliant inferred mineral resource of 120Mt at 41.1% Fe. Kogi will supply cast steel feedstock to steel manufacturers and other industrial customers in Nigeria and overseas.

Despite the move to defer fundraising, Kogi said it had received positive news from fund managers and corporate advisors in North America, Japan and Germany "of an emerging trend global capital flows to the commodity sector, especially to under-valued projects with quality, tangible asset bases or operations".

Kogi said it planned to proceed with capital raising for around US$8 million for the BFS "over the next few months or when equity markets show signs of recovery".

"Targeted new investors include "high net worth individuals or family offices and specialist resource funds" that have expressed interest following the late January to early February roadshow in Europe, London and North America," said the company.

Despite slowing down its project timeline, Kogi has moved ahead with approval for a small-scale trial pit, on which work is scheduled to be completed in April.